BIS Sets New Regulations for Banks Holding Crypto Assets
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A recent report from the Bank for International Settlements (BIS) reveals its cautious stance on Bitcoin (BTC) and other cryptocurrencies.
The Basel Committee on Banking Supervision (BCBS) of the BIS has outlined new rules for banks dealing with Group 2 crypto assets, including Bitcoin, Ethereum (ETH), and XRP. These new regulations reflect the high-risk nature of these assets due to their volatility.
Under the upcoming rules, which will take effect on January 1, 2026, banks will be restricted to a maximum exposure of 1% of their Tier 1 capital to Tier 2 assets. This measure is intended to mitigate risks associated with the unpredictable nature of the crypto market.
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Starting in 2026, banks will also need to provide detailed reports on their cryptocurrency activities, including both qualitative and quantitative aspects, to ensure financial stability.
The guidelines also address stablecoins, with favorable regulatory treatment for those issued by regulated entities, like JPMorgan’s JPMCoin. In contrast, stablecoins from permissionless blockchains, such as Tether’s USDT and Circle’s USDC, are expected to face stricter oversight.